Many members of our community have asked us how to stake Stablecoin.
Well, here you are with a special guide whose strategy allows us to get the most out of our stablecoins MAI\DAI. The risks are always there, as usual, but even in this case although we will add liquidity to a pool, we will not meet the Impermanent Loss as on other strategies.
So, let's see how to stake stablecoins!
How to stake stablecoin: requirements
We are talking about a very simple strategy, in which we will need only 2 platforms to be able to start staking stablecoin maximizing returns, namely:
- Fantom Bank ProtonFi
- Beethoven-X(Optional)
We'll use 2 tokens:
- Mai Finance Stablecoin
- Stablecoin
- (Fantom for Gas Fees and Swaps)
We'll be operating on Fantom Chain, so first you have to know how to bring your FTMs to Metamask. Once you've deposited your and opened the platform, we can begin to better understand how to stake stablecoin. Let's get started!
Step-by-step Guide
1) FTM -> DAI \ MAI
The first thing to do after bringing our FTMs to Metamask, is to swap them to Fantom Bank ProtonFiBeethoven X so we can get DAI and MAI tokens.
Here's a video on how Beethoven Xworks (Italian Language).
2) Add Liquidity on DAI-MAI pool
After swapping our , let's go to to add liquidity.
MAI-DAI Pool and click on Get MAI-DAI LP
It will open the following page in which we just have to add the liquidity. Clicking on will automatically set the maximum amount that can be inserted according to your availability.
Then, you only need to Approve the smart-contract, pay the Fees in FTM and the funds will be deposited.
3) Staking Stablecoin DAI-MAI LP
Once you have added the liquidity all you have to do is head back to , approve the contract by clicking on Enable Farms and Deposit. So in just 3 steps we've figured out how to staking stablecoin through DeFi with a current yield of 79.75% APR.
But there's more, as we will now see how the $ rewards work.
4) Rewards in $PROTO
With this strategy, you only need to harvest the weekly rewards in order to generate compound interest. According to apr-to-apy's calculations, this would generate a return of about 120% APY, all on stablecoin!
Obviously, in this case the $PROTO tokens should be sold for and deposited again as LP Token.
These rewards will be returned with the $PROTO token.
This token runs on Chain Fantom, and it seems to have pretty smart Tokenomics. In fact, we can see how on CoinMarketCap its Total Supply is just 4,000,000.
And given its very low MarketCap, not even listed on CMC, its price could rise, given the past performance of other low-cap tokens with little supply. But these are only suppositions, and not certainties.
Moreover, if we do not want to sell the rewards in $PROTO, we can opt for different ways.
4.1) Staking Proto
We could decide to staking proto at the modest APR percentage of 206% by performing the harvest and restake manually as in the previous case, obtaining:
- : 680% APY
- : 640% APY
- Monthly: 569% APY
- Semi-Annually: 312% APY
- Annually: 206% APY\APR
4.2) Add Liquidity to PROTO-FTM\USDC
This is the one that real degens might prefer. In fact, adding liquidity to this pool is very risky, but can generate an ROI of about 3% daily.
It goes without saying that the risk of suffering Impermanent Loss is high given the relatively low MarketCap of the $PROTO token, but the percentage of return in $PROTO token is so high as to be tempting for the most daring.
Moreover, in this case we will receive from the pool the token $ELECT as reward, exchangeable in the Swapper section in exchange of $PROTON on Fantom Bank ProtonFi, or continue staking stablecoin as above..
4.2.1) Swapper $ELECT for $PROTON
In order to exchange $ELECT for $PROTON you will need to go to the Swapper section of Fantom Bank ProtonFi. However, you can only sell after holding the tokens for a minimum of 72 hours.
More precisely:
- Selling 1 $ELECT with an AHT (average holding time) of +72 hours will always return 1 $PROTO.
- Selling 1 $ELECT with an AHT (average holding time) of 48 hours will always return 0.9 $PROTO.
- Selling 1 $ELECT with an AHT (average holding time) of 24 hours will always return 0.8 $PROTO.
- Selling 1 $ELECT immediately after harvest will always return 0.7 $PROTO.
This favors long-term investors over short-term investors.
Here's a little recap on how to stake stablecoin in DeFi
- DAI\MAI at 50% on Beethoven XFantom Bank ProtonFi
- DAI\MAIFantom Bank ProtonFi and add DAI-MAI LP
- DAI-MAI LPFantom Bank ProtonFi
- Harvest your $and follow the strategy you prefer.
The original version of this article is published
**This article was written by the GoInvest team. Each guide is for informational purposes only and does not suggests any form of investment or savings plan or, much less, financial advice. You can read our official articles in our website.
This guide is intended for informational purposes only. We don't assume any responsibility for losses incurred during these steps or during the investment period.Do your research and be responsible.
